Law of Contract – Indian Contract Act, 1872
Mind Map:
1. Meaning
Contract = Agreement enforceable by law. Agreement = Offer + Acceptance. Contract = Agreement
+ Enforceability.
2. Essentials of Valid Contract (Sec. 10)
Offer & Acceptance, Intention to create legal relationship, Lawful consideration, Capacity to contract
(Major, Sound mind, Not disqualified), Free consent (no coercion, undue influence, fraud,
misrepresentation, mistake), Lawful object, Certainty, Possibility of performance, Not void.
3. Types of Contracts
Validity: Valid, Void, Voidable, Illegal, Unenforceable. Formation: Express, Implied, Quasi.
Performance: Executed, Executory, Unilateral, Bilateral.
4. Offer & Acceptance
Offer (Sec. 2a): Willingness to do/abstain with view to obtain assent. Types: General, Specific,
Cross, Counter, Standing. Acceptance (Sec. 2b): Must be absolute, communicated, prescribed
mode.
5. Consideration (Sec. 2d)
Something in return. Must be real, lawful, not past (except at request). Exceptions: Natural love &
affection, Past voluntary service, Promise to pay time-barred debt, Agency, Charitable subscription.
6. Capacity of Parties
Minor: Agreement void ab initio. Can be beneficiary. Unsound mind: Valid only when of sound mind.
Disqualified: Alien enemies, convicts, insolvents.
7. Free Consent (Sec. 14)
Consent not free if caused by: Coercion (Sec. 15), Undue influence (Sec. 16), Fraud (Sec. 17),
Misrepresentation (Sec. 18), Mistake (Sec. 20–22).
8. Performance & Discharge
By parties or agent. Discharge by: Performance, Mutual agreement (novation, rescission,
alteration), Impossibility, Operation of law, Breach.
9. Breach & Remedies
Breach = Failure to perform. Remedies: Damages (ordinary, special, nominal, punitive), Specific
performance, Injunction, Quantum meruit.
10. Quasi-Contracts (Sec. 68–72)
Not real contracts but imposed by law to prevent unjust enrichment. Examples: Necessaries to
minor, Payment by interested person, Non-gratuitous acts, Finder of goods, Payment by
mistake/coercion.
